Misappropriation in bitumen purchase for road schemes, says CAG

RANCHI: CAG has alleged misappropriation of funds in bitumen purchase under the Prime Minister Rural Road Scheme between 2005 and 2010 in Jharkhand.

"Test check of records of six out of 10 Programme Implementation Units (PIU) showed that five contractors submitted 43 invoices in support of purchase of 408.451 MT of bitumen for construction of seven packages of road works," the CAG report, which was placed in the assembly on Saturday, said.

The report stated that of them 34 invoices were found to be fake as stated by (an) oil company, resulting in misappropriation of 85.64 lakh.

In case of nine invoices, Rs 21.51 lakh was paid fraudulently to the agencies resulting in Rs 1.07 crore being misappropriated.

It said that eleven contractors submitted 76 inadmissible invoices resulting in fraudulent payment of Rs 2.33 crore as cost of bitumen.

The CAG said against a target of 1,957 rural roads to be constructed for providing connectivity to 5,427 habitations during 2005/10, only 164 were completed to provide connectivity to 496 habitations.

It said roads were not constructed as per the priorities fixed and the quality was compromised due to non-rectification of defects.